The Memphis appeal. [volume] (Memphis, Tenn.) 1886-1890, 1887-05-08
4 RIGHTEOUS JUDGMENT.
THE SUPREME COURT OF OHIO
DECIDES THAT
For Abuse and Misuse OF Its Powers
o Corporation May Be
Punished
BY THE FORFEITURE OF ITS
FRANCHISE,
And Thus Be Placed Beyond the
Power to DO Mischief and
Inlet Injury,

MARIETTA, o., May Two i'm
portant decisions were announced on
Tuesday last by the Supreme Court
of Ohio. The suits we're instituted
by the State, on relation of the At
torney General-one against the Gin
cinnati, New Orleans aud Texas Pa
cifc Railway Company, j. e., the
lessees of the Cincinnati Southern
railway and its connections, and the
other against the Cincinnati, Wash
ington and Baltimore Railway Com
pany, The proceedings are in quo
warranto, and are for a forfeiture of
the charters of these corporations,
The petitions charged these corpora
tiohs with conspiracy with the
Standard Oil Company, and its vari-
Gus agencies, to build up that
monopoly, and crush out its com
petitors, by numerous acts Of unlaw-
full discrimination in freight rates on
petroleum oils, such as charging ex-
Orbitant and extortionate rates; sud
denly, without notice, raising rates
that had been given and relied and
acted upon; making determinations,
amounting, in some instances,
to A3 per cent. difference
in favor Of the STANDARD Oil Com
pauy, and against other shippers,
and many other violations OF the
rights OF shippers under the laws
governing common carriers. These
petitions were fled by the Attorney
General, at the instance of Mr.. Geo.
Rice, of Marietta, one of the princi-
pal sufferers, and were prepared by
his counsel, Judge W. b. LOOMS,
in the c., N. o. & Il. p. case and A,
d. Toilet, in the G, W. Il b.
case.
The railroad companies interposed
demurrers to the petition, raising the
questions whether the facts alleged
constituted misuse or abuse of the
franchise, rights and privileges con-
ferred upon the corporations by the
law of their creation, and whether
the proceeding of quo wsrranto to
GUST them OF their franchises, and
deprive them Of their corporate ex-
istence is the proper remedy in such
cases.
The two cases are substantially
alike, except that the matters com
planned of in the Cincinnati, Now
Orleans and Texas Pacific case were
transactions occurring outside OF
Ohio.
The Supreme Court overruled the
demurrers, thus settling the impor-
tant doctrines that such acts are
abuses and misuse Of corporate fran
chise, which may be punished by a
forfeiture of the charters Of the cor
porations if the evidence sustains
tue charges; that quo warranto is
the proper remedy, and that our
courts may deprive corpOrations-an
artificial creature of the State--of its
continued existence and power TO 40
mischief when it violates She law of
its creation and ceases to fulfill the
design aud purpose of its organiza-
ton to be common carrier for all
alike, whether such abuse OF It's
powers occurs in domestic or an
Interstate transaction. We are in
formed that Judge Dickman dissonts
upon the last proposition.
Judge Nash was associated with
counsel for the State, and ex Gov
Hoadly and the Hon. W. Il. Nc
ClinIck appeared for the railroad
companies.
The cases were submitted upon
elaborate briefs, and full oral argu-
ment by all the counsel mentioned
above,